Credit Cards for Charity

Credit cards have always been marketed as a way to save money or as a convenient money management tool or as a mean of protection. But lately credit card-issuers have realized that Americans are not just a money-oriented nation looking for another discount. America is also famous for the great number of charitable people. According to statistics, Americans donate around $240 billion to charity every year. This is a very significant amount of money and banks are ready to take advantage of the noble desire. So now credit card companies offer you a wonderful opportunity to donate with credit cards. Basically, credit cards for charity (they are also called affinity credit cards) work exactly like cash back cards. Cash back programs allow you to spend a certain amount of money while shopping with your plastic and then receive a small percentage (usually up to 5%) of it back. With a charity card the check will go to a non-profit organization. Some of credit card companies are affiliated with certain charitable organizations such as North Shore Animal League America or Take Charge of Education. Some cards offer a list of NGOs so you can make the decision yourself. Among the most popular non-profit organizations are those working on public education, animal and environment protection, and crime reduction. Usually, to qualify for a charity card you need to have good or excellent credit history. But unlike credit cards for good credit affinity cards have high fees and interest rates. You have to carefully analyze terms and conditions to see whether the amount of your donations will be worth the money you will "donate" to the card-issuing company. That is why a charity credit card is not a very good option for those consumers that are used to carrying balances on the credit cards. Your donations will simply be too costly for you and will ruin the pleasure of giving to the needy. Charity cards often give fewer bonuses and discounts. So do not count on free airline tickets with a mileage program on an affinity card. And the most shocking thing for experienced charity-givers is that the sums donated through credit cards are not tax-deductible. The contractual agreement between the credit card holder and the credit card company does not give you the opportunity to declare this money as charity. Despite all the disadvantages of affinity credit cards compared to regular rewards cards they are getting more and more popular not only in the United States but around the world. When offering plastic with charity programs banks appeal to the emotional side. These programs not only help credit card companies to get new clients but simple create a more favorable image. This is especially important because financial institutions are often portrayed as greedy and profit-driven. That is why banks struggle for acclaimed charitable organizations not less than for new credit card holders. The competition is high and marketing specialists try their best to create the best-looking charity programs for credit cards. So, if you consider donating to wildlife or children - be sure to check credit card deals for charity. After all, giving to those in need is a wonderful tradition.